Chilling comment girl, 12, accused of murdering a 37-year-old woman in a trendy Melbourne suburb made as she faced court for the first time

A 12-year-old girl has asked a magistrate 'where am I going?' as she faced court charged with the murder of a 37-year-old-woman.

The girl was arrested and charged with murder after the body of the woman was found in an apartment at Footscray in Melbourne's inner-west about 2am on Thursday.

She faced a children's court on Friday where her lawyer said her incarceration at a juvenile centre was inappropriate.

He said she would face a raft of challenges while in custody due to her intellectual disabilities and anxiety.

She will be assessed while she remains in custody, the court was told.

The defence lawyer said he planned to apply for bail at the Supreme Court and would explore more appropriate housing options, including community housing and boarding.

The prosecutor asked for a 12-week adjournment, but the magistrate rejected this as it was too long.

'Given the unique nature of this case and custody, the period should be shorter,' he said.

At the end of the brief hearing, the girl asked: 'Where am I going?'

The magistrate explained police would take her back back to juvenile detention.

The girl has been remanded in custody and will next appear in court via video link on November 24.